The details
of the Framework Act on Blockchain Industry Promotion that the Korea
International Trade Association (Chairman, Kim Young-joo) and the Korea
Blockchain Industry Promotion Association (Chairman, Kim Hyung-joo) jointly
proposed and a lawmaker Hong Eui-rak is pushing legislation were unveiled at
the National Assembly Hall on May 2.

The Korea
International Trade Association said, “We have concluded that in order for the
blockchain industry to play its role as the game changer of the 4th industrial
revolution, it is urgent to provide systematic support through the
establishment of the framework act on promotion. Then, we held ‘A large
conference for the promotion of the blockchain industry’ in cooperation with
Hong Eui-rak, the Democratic Party member, and the Korea Blockchain Industry
Promotion Association at the National Assembly Hall."

The
blockchain industry has been highlighted as a revolutionary technology that
simultaneously provides reliability and efficiency in a hyper-connected economy
in which all data is interconnected. However, it has been constantly pointed
out that it is difficult to launch revolutionary blockchain startups in Korea
due to uncertainty of laws and systems.

This
Framework Act on Blockchain Industry Promotion contains ▲ establishment of the
foundation for blockchain industry (to stimulate R&D, to support start-ups,
to foster professional manpower, and technical standardization, etc.) and ▲ facilitation of the use of blockchain technology (to acknowledge
the validity of electronic documents in the block chain and to regulate the
legal nature of smart contracts). In order to carry out those proposes, the act
regulates to set up 'Strategy Committee for Blockchain Industry' as a legal
system under the Prime Minister.

An attorney
Kim Kyeong-hwan said in the meeting as a presenter, "The framework act
divides the blockchain industry into financial and non-financial sectors.
Chairman of the Financial Services Commission and the Minister of Science and
ICT will lead the promotion plans for each sector. As it also allows Initial
Coin Offering (ICO) within the current legal boundaries, it is necessary to
collect opinions from various fields during the legislative process."

Park
Chang-ki, chairman of the Korea Blockchain Industry Promotion Association,
stressed in his keynote speech, "Korea needs to refrain unreasonable
regulations on the blockchain industry and create a reasonable regulatory
environment based on the principle of negative and post-regulation."

Ahn
Geun-bae, head of the Trade Policy Support Division at the Korea International
Trade Association, said, ”The blockchain industry withcharacteristics of fundamental technology, is
expected to develop business models with a new paradigm in combination with
artificial intelligence (AI), autonomous navigation, big data, bio, and smart
city in the future.” He also stated, ”In Korea, it is essential to establish an
ecosystem for blockchain startups through legal and institutional reforms as
small and medium enterprises possess about ten times more blockchain related
patents than big companies."